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Disney misses mark
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November 8, 2001: 5:04 p.m. ET
House of Mickey just misses Wall Street estimates; warns on 1Q 2002.
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NEW YORK (CNNmoney) - Walt Disney Co. reported fiscal fourth-quarter operating results Thursday that were a penny below Wall Street expectations while warning that the first quarter of 2002 will be even more difficult.
Excluding restructuring and one-time charges, Burbank, Calif.-based Disney (DIS: Research, Estimates) reported operating income of $132 million, or 6 cents a share, compared with $328 million, or 15 cents a share, for the same time last year.
Net income for third quarter came to $53 million, or 3 cents a share compared to $167 million or 11 cents a share in the year-earlier period.
For the year, Disney posted operating income of $1.5 billion, or 72 cents a share, compared to $1.5 billion, or 72 cents a share, in 2000, excluding restructuring and one-time charges.
Earnings tracker First Call expected a 7-cent per-share profit for the fourth quarter and 73 cents for the year.
"Recent events make this a particularly challenging and somewhat anomalous time for our company," CEO Michael Eisner said. "We know that there are certain factors we can control and influence, and others over which we have little control.
"While we cannot determine or predict the timing of a return to normalcy, we are focused on those factors we can manage—continued output of quality creative content, like Monsters, Inc."
Shares for Disney, off 46 percent from its year high of $34.80, dropped 34 cents in after-hours trading Thursday on Instinet to $18.50.
Disney's revenue fell nearly 5 percent to $5.8 billion for the quarter while revenue results were nearly flat at $25.2 billion for year.
Disney said it expects the terrorist attack of September to "particularly influence its operating results in the first quarter of fiscal 2002." The media company warned that operating income could be somewhat less than half of its first quarter results in 2001. Disney reported 16 cents in the first quarter 2001.
Disney said that business should improve in the last three quarters of 2002, with operating income declines of as much as 10 percent to 15 percent for those later three periods combined versus the prior year.
First Call expects Disney to report a 17-cent profit in its first quarter of 2002.
Segment results
Disney took $1.5 billion in restructuring and impairment charges for the year and $126 million for the quarter.
Disney owns the ABC television network, which has slumped along with its once leading show "Who wants to be a Millionaire?" Revenue for Disney's media networks dropped 3 percent to $2.2 billion for the quarter while segment operating income fell 12 percent to $348 million.
The quarter reflects the impact of lower ratings, a soft advertising market and high prime-time programming costs at ABC, the company said.
"Additionally, the quarter reflected lower revenues and increased news programming costs resulting from the events of Sept. 11, 2001 and the days that followed," the media company said.
Parks & Resorts revenue fell 2 percent to $1.7 billion for the quarter while segment operating income dropped by 13 percent to $313 million.
On Sept. 12, Disney shut its Orlando, Fla., theme parks for only the second time in its nearly 30-year history. Disney's quarterly results also reflect the impact of Sept. 11 which were impacted by theme park closures and lower attendance and hotel occupancy due to a drop in travel following the terrorist attack.
Disney's quarterly results do not reflect the recent success of its animation film "Monster Inc." Revenue at studio entertainment dropped 11 percent to $1.3 billion in fourth quarter but gained 2 percent to $6.1 billion for the year. 
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